In the rush to entrepreneurial success, many people make a tragic mistake. They are certainly entrepreneurial. It's success they just can't seem to grasp! Therefore, they make decisions intended to prop up their images so people will assume them to be successful. Meanwhile, behind the scenes, their business is struggling and collapse is just around the corner. The scenario is so common, it seems normal. But is being normal such a good idea? How can an entrepreneur achieve business success without drowning in a sea of debt? Maybe the following ideas will help. 1. Have a plan! It is easy to start a business. That's the good news... and the bad news! It's good because people with the spirit of an entrepreneur can get started without delay. It's bad because people can start businesses without thinking! To be successful in business you must have a realistic plan with realistic goals. Your business will grow slowly, so plan accordingly. 2. Keep it real! Almost every new business owner wants to lease a Hummer, wrap it in promotional jargon, put up a billboard, and have a reception following the ribbon-cutting ceremony. What about customers? Your services and products are only as valuable as your customers say they are. Building a business requires a solid foundation of loyal customers. Spending $100,000 on self- indulgence and ego-stroking is certainly a temptation. In the end, however, few people who do that stay in business very long. 3. Under-promise and over-deliver! Many entrepreneurs over-promise and under-deliver. If you want to set yourself above and beyond your customers, make sure you over-deliver! Go the extra mile in doing something that will make your customers feel good about having done business with you. Be honest about your services, products, and costs. Deal with people the way you want them to deal with you. If you like dealing with jerks, be a jerk... just don't quit your day job! 4. Grow slowly! Many businesses can be started as part-time with little investment of time or resources. As you begin, make your business a spare-time endeavor. When necessary, move into the business on a full-time basis or hire your first employee. The danger in moving too quickly is that your monthly obligations exceed your initial business revenue. You put incredible pressure on yourself when you try to generate $25,000 in monthly revenue because you have plasma televisions in your offices, twelve computers, a neon sign, and the lease payment on that Hummer. You might want to eat, pay your mortgage, and put gas in that Hummer! Let your business drive your expansion! Charles was a go-getter... at least that's what people thought. He owned several businesses and had buildings named after himself. His offices were tributes to his success and he obviously spared no expense in providing only the best for his employees and his customers. Every week included trips to the many cities in which he had businesses. He stayed in the finest hotels, ate in the finest restaurants, and was driven to and from meetings in the newest limo he could rent. People were awed at his success. After all, he was young and obviously wealthy. But one day things began to change. Charles had outspent his earning power and was sinking deeper and deeper into debt. He had an image he had to maintain and he was certain things would turn around... but they didn't. Charles slowly began to liquidate assets but it wasn't enough. He had a "fire sale" to generate some cash. His payroll checks started bouncing. He was maxed out on his credit cards so he couldn't even buy a plane ticket or book a hotel. He eventually filed bankruptcy and closed several of his businesses. He left his creditors on the hook for his debts. He was forced to sell his home and move into an apartment. Even his expensive "status car" was repossessed. Charles climbed to the top of the business world, and like many others, he fell down! It's easy to start a business the wrong way! If you borrow money to start a business, your profits are mortgaged until the loan is paid. But if you start a business slowly, work hard, and stay out of debt, your success will be real not artificial! Think about it! |
